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2019 (2) TMI 760 - HC - Service TaxPort services or not - operation and management including necessary modification and augmentation of facilities at Cochin Port - renting out jetties owned by them within the Port area to various agencies and individuals and received rent from the same - Held that:- The amounts paid by IGTPL to CPT is only in respect of the right conferred on the IGTPL to carry out the port services; for provision of which the users of the port would pay a fee. In such circumstances, definitely the revenue earned by IGTPL will be taxed under the Finance Act, 1994 specifically under sub-clause (lxxxii) of Section 65. It is a percentage of that, which the IGTPL pays to CPT, in lieu of surrendering their rights to carry out and provide port services in the subject terminals. There is no port service by the CPT to IGTPL. Rental amounts collected for various depots - Held that:- License fees were found to be not classifiable under port service or taxable under the Finance Act. As to rent from immovable property the Tribunal found that the same is appropriately classified only from 01.06.2007 - appeal rejected. The relationship between IGTPL and CPT continued in the relevant year as in the prior years. The amended provision also does not bring the subject transaction between the CPT and IGTPL, within the tax net work of Finance Act 1994. We see from the order of the Tribunal that the Tribunal in the later year has followed the earlier order and the question of rental income being assessed under the Finance Act 1994 never arose in the second case. Appeal dismissed.
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